- USD / CAD bounces from 1.3060 to hit session highs above 1.3100.
- The Canadian dollar retreats with oil prices falling.
- In the long term, the loonie is expected to be helped by the weakness of the USD – CitiBank.
The U.S. dollar It has spiked higher during the North American trading session on Tuesday to regain ground lost to its Canadian counterpart after depreciating around 0.5% in the past two days.
Canadian dollar loses steam amid falling oil prices
Positive momentum in the loonie has faltered on Tuesday, undermined by falling oil prices. The West Texas Intermediate price of a barrel has fallen nearly 1.25% so far, hurt by concerns about the impact of coronavirus lockdowns on global demand.
Rising hopes for a COVID-19 vaccine after the release of promising Moderna vaccine test results and market speculation about a possible OPEC + deal to extend production cuts beyond January 2021 does not They have managed to counter fears about the economic consequences of the increasing number of infections and deaths in Europe and the United States.
The bitter mood of the market has been reflected in the stock markets. Wall Street is trading moderately lower as enthusiasm on Monday waned; the Dow Jones Index is down 0.45%, the S&P Index is down 0.2% and the Nasdaq Index is practically unchanged.
Technical levels
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